Homework Answers
Answer-A)-
| STUART BRANDS INC. | ||
| STATEMENT OF CASH FLOWS PARTIAL (USING DIRECT METHOD) | ||
| FOR THE YEAR ENDED DECEMBER 31,YEAR 2 | ||
| Particulars | Amount | |
| $ | ||
| Cash Flow from Operating activities | ||
| Cash collection from customers for sales | $610000+$28000-$21300 | 616700 |
| Cash collection from customers for services | $5700+$750-$2800 | 3650 |
| Cash payments for:- | ||
| Inventory | $371000+$57400-50600+$19100-$23900 | -373000 |
| Insurance | $39000+$18000-$24500 | -32500 |
| Salaries | $141000+$4150-$4750 | -140400 |
| Net cash Flow from Operating activities | 74450 | |
B)-
| STUART BRANDS INC. | ||
| STATEMENT OF CASH FLOWS PARTIAL (USING INDIRECT METHOD) | ||
| FOR THE YEAR 2 | ||
| Particulars | Amount | |
| $ | ||
| Cash flow from operating activities | ||
| Net Income | 63200 | |
| Adjustments to reconcile net income to net cash provided by operating activities | ||
| Adjustment for non cash effects | ||
| Depreciation | 4600 | |
| Gain on sale of equipment | -3100 | |
| Change in operating assets & liabilities | ||
| Decrease in accounts receivable | 6700 | |
| Increase in inventories | -6800 | |
| Decrease in prepaid insurance | 6500 | |
| Increase in accounts payable | 4800 | |
| Increase in salaries payable | 600 | |
| Decrease in unearned service revenue | -2050 | |
| Net cash flow from operating activities | 74450 | |
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Stuart Brands, Inc., presents its statement of cash flows using the indirect method. The following accounts...
Walton Brands, Inc., presents its statement of cash flows using the Indirect method. The following accounts...
Walton Brands, Inc., presents its statement of cash flows using the Indirect method. The following accounts and corresponding balances were drawn from Walton's Year 2 and Year 1 year-end balance sheets: Account Title Accounts receivable Merchandise inventory Prepaid insurance Accounts payable Salaries payable Unearned service revenue Year 2 $20,400 59,300 18,000 26,000 4,900 880 Year 1 $29,200 51,000 27,800 18,600 3,950 2,750 The Year 2 income statement is shown below: Income Statement Sales Cost of goods sold Gross margin Service...
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities....
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net Income for the 2021 fiscal year was $704,000. Depreciation and amortization expense of $83,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: look Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in salaries payable Decrease in income taxes payable $38,000 10.800 10,100 11,600 14,000...
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities....
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2021 fiscal year was $639,000. Depreciation and amortization expense of $90,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in salaries payable Decrease in income taxes payable $25,000 9,500 8,800 10,300 14,000 Required:...
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities....
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2018 fiscal year was $704,000. Depreciation and amortization expense of $83,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable Increase in inventories Increase prepaid expenses Increase in salaries payable Decrease in income taxes payable $38,000 10,800 10,100 11,600 14,000 Required: Prepare...
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities....
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2021 fiscal year was $694,000. Depreciation and amortization expense of $81,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable $36,000 Increase in inventory 10,600 Increase in prepaid expenses 9,900 Increase in salaries payable 11,400 Decrease in income taxes payable 12,000 Required:...
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities....
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2021 fiscal year was $659,000. Depreciation and amortization expense of $94,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in salaries payable Decrease in income taxes payable $ 29,000 9,900 9,200 10,700 18,000...
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities....
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2021 fiscal year was $724,000. Depreciation and amortization expense of $87,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in salaries payable Decrease in income taxes payable $42,000 11,200 10,500 12,000 18,000 Required:...
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities....
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2021 fiscal year was $684,000. Depreciation and amortization expense of $99,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable $ 34,000 Increase in inventory 10,400 Increase in prepaid expenses 9,700 Increase in salaries payable 11,200 Decrease in income taxes payable 10,000...
Cash Flows from Operating Activities-Indirect Method The income statement disclosed the following items for the year:...
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Cash Flows from Operating Activities,Indirect Method The income statement disclosed the following items for the year:...
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Walton Brands, Inc., presents its statement of cash flows using the Indirect method. The following accounts and corresponding balances were drawn from Walton's Year 2 and Year 1 year-end balance sheets: Account Title Accounts receivable Merchandise inventory Prepaid insurance Accounts payable Salaries payable Unearned service revenue Year 2 $20,400 59,300 18,000 26,000 4,900 880 Year 1 $29,200 51,000 27,800 18,600 3,950 2,750 The Year 2 income statement is shown below: Income Statement Sales Cost of goods sold Gross margin Service...
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net Income for the 2021 fiscal year was $704,000. Depreciation and amortization expense of $83,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: look Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in salaries payable Decrease in income taxes payable $38,000 10.800 10,100 11,600 14,000...
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2021 fiscal year was $639,000. Depreciation and amortization expense of $90,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in salaries payable Decrease in income taxes payable $25,000 9,500 8,800 10,300 14,000 Required:...
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2018 fiscal year was $704,000. Depreciation and amortization expense of $83,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable Increase in inventories Increase prepaid expenses Increase in salaries payable Decrease in income taxes payable $38,000 10,800 10,100 11,600 14,000 Required: Prepare...
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2021 fiscal year was $694,000. Depreciation and amortization expense of $81,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable $36,000 Increase in inventory 10,600 Increase in prepaid expenses 9,900 Increase in salaries payable 11,400 Decrease in income taxes payable 12,000 Required:...
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2021 fiscal year was $659,000. Depreciation and amortization expense of $94,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in salaries payable Decrease in income taxes payable $ 29,000 9,900 9,200 10,700 18,000...
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2021 fiscal year was $724,000. Depreciation and amortization expense of $87,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in salaries payable Decrease in income taxes payable $42,000 11,200 10,500 12,000 18,000 Required:...
Cash Flows from Operating Activities-Indirect Method The income statement disclosed the following items for the year: Depreciation expense $46,000 26,830 Gain on disposal of equipment 287,600 Net income The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $7,160 (4,080) Inventory Prepaid insurance (1,530) (4,860) Accounts payable Income taxes payable 1,530 Dividends payable 1,070 a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the...
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